Royalty Pharma massively upsizes; G-III Apparel, OrthoLite outline investor-friendly changes

By Paul A. Harris

Portland, Ore., Oct. 4 – The bank loan market was flat to up ¼ point on Tuesday, according to a trader who added that it is an “all-bid, no-offers” story in the bank loan market.

“Everybody is buying what they can,” said the trader who added that despite what the dealers seem to be saying, paper is hard to get.

“Demand is coming from everywhere, and it’s forcing a wave of refinancings,” the source added.

As investors continue to anticipate a Fed move before the end of the year, cash continues to flow into the asset class, the trader said.

The daily flows of the dedicated bank loan retail funds were plus $5 million on Monday, the source added.

In the primary market, Royalty Pharma Investments Finance Trust upsized its six-year term loan B-5 to $3.4 billion from $705 million and tightened talk.

However, G-III Apparel Group Ltd. and OrthoLite made concessions to investors.

G-III Apparel hiked spread talk and price talk amid other changes to its $350 million six-year term loan B (B1/BB+). Spread talk increased to Libor plus 525 bps from earlier talk of 450 bps to 475 bps. Price talk deepened the original issue discount to 98 from 99.

For OrthoLite’s $200 million term loan B, the spread to Libor was set at 500 bps, the wide end of the 475 bps to 500 bps spread talk.

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